WINNIPEG, Manitoba, April 16 (Reuters) - The Western
Canadian province of Manitoba forecast a budget deficit of C$518
million ($506.03 million) on Tuesday for its 2013-14 fiscal
year, its fifth-straight deficit, as it warned of the costs of
potentially major flooding this spring.

Manitoba, whose economy depends in part on farming and
mining, projected spending at C$14.8 billion and revenue of
C$14.2 billion, both up 3 percent from 2012-13, and said it
would raise the province's sales tax. The deficit calculation
takes into account some C$150 million that is budgeted but not
expected to be spent.

Manitoba's left-leaning New Democratic Party government, led
by Premier Greg Selinger, is aiming to balance the budget by
2016-17.

Finance Minister Stan Struthers said the twin threats of a
weak global economy and spring flooding left Manitoba with a
choice of raising taxes and fees or making deep spending cuts.

The province has budgeted C$135 million in total to cover
holdover expenses from past floods and possible damages from any
floods this year. In 2011, the total cost of fighting floods and
compensating property owners was about C$1 billion -- around
half of which the Canadian government paid.

"We can't stick our heads in the sand and pretend there's no
flood," Struthers said. "We can't pretend we don't have to pay
for it."
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